6 Sigma

Six Sigma - An Introduction:

Six Sigma at many organizations simply means a measure of
quality that strives for near perfection. Six Sigma is a
disciplined, data-driven approach and methodology for
eliminating defects (driving towards six standard deviations
between the mean and the nearest
specification limit) in any
process

--

from

manufacturing
transactional

to
and

from

product
to service.
The

statistical

of

Six

Sigma describes quantitatively how

a process is performing.
To achieve Six Sigma,
a process must not produce more than 3.4 defects per
million opportunities. A Six Sigma defect is defined as
anything outside of customer specifications. A Six Sigma
opportunity is then the total quantity of chances for a
defect. Process sigma can easily be calculated using a
calculator. The fundamental objective of the Six Sigma
methodology is the implementation of a measurement-based
strategy that focuses on process improvement and variation
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reduction

through

the

application

of

Six

Sigma

improvement projects. This is accomplished through the use

of two Six Sigma sub-methodologies: DMAIC and DMADV.

The Six Sigma DMAIC process (Define, Measure, Analyze,

Improve, Control) is an improvement system for existing
processes

falling

below

specification

and

looking

for

incremental improvement. The Six Sigma DMADV process

(Define, Measure, Analyze, Design, and Verify) is an
improvement system used to develop new processes or
products at Six Sigma quality levels. It can also be
employed if a current process requires more than just
incremental improvement. Both Six Sigma processes are
executed by Six Sigma Green Belts and Six Sigma Black
Belts , and are overseen by Six Sigma Master Black Belts.
According to the Six Sigma Academy, Black Belts save
companies approximately $230,000 per project and can
complete four to 6 projects per year. General Electric, one
of the most successful companies implementing Six Sigma,
has estimated benefits on the order of $10 billion during the
first five years of implementation. GE first began Six Sigma
in 1995 after Motorola and Allied Signal blazed the Six

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6 Sigma
Sigma trail. Since then, thousands of companies around the
world have discovered the far reaching benefits of Six
Sigma.

Tools of Six Sigma:

The

tools

are

applied

within

simple

performance

improvement model known as DMAIC, or Define-MeasureAnalyze-Improve-Control.

DMAIC

can

be

described

as

follows:

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6 Sigma
D
Define the goals of the improvement activity. At the top level
the goals will be the strategic objectives of the organization,
such as a higher ROI or market share. At the operations
level,
a
goal

might be to increase the throughput of a production

department. At the project level goals might be to reduce
the defect level and increase throughput. Apply data mining
methods to identify potential improvement opportunities.
M
Measure the existing system. Establish valid and reliable
metrics to help monitor progress towards the goal(s)
Defined at the previous step. Begin by determining the

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current baseline. Use exploratory and descriptive data
analysis to help you understand the data.
A
Analyze the system to identify ways to eliminate the gap
between the current performance of the system or process
and the desired goal. Apply statistical
tools to guide the analysis.
I
Improve the system. Be creative in finding new ways to do
things better, cheaper, or faster. Use project management
and other planning and management tools to implement the
new approach. Use statistical methods to Validate the
improvement.
C
Control the new system. Institutionalize the improved system by modifying
compensation and incentive systems, policies, procedures, MRP, budgets,
operating instructions and other management systems. You may wish to utilize
systems such as ISO 9000 to assure that documentation is correct.

Statistical Six Sigma Definition:

What does it mean to be "Six Sigma"?

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Six Sigma at many organizations simply means a measure of
quality that strives for near perfection. But the statistical
implications of a Six Sigma program go well beyond the
qualitative eradication of customer-perceptible defects. It's
a methodology that is well rooted in mathematics and
statistics.
The objective of Six Sigma Quality is to reduce process
output variation so that on a long term basis, which is the
customer's aggregate experience with our process over
time, this will result in no more than 3.4 defect Parts Per
Million (PPM) opportunities (or 3.4 Defects Per Million
Opportunities DPMO). For a process with only one
specification limit (Upper or Lower), this results in six
process standard deviations between the mean of the
process and the customer's specification limit (hence, 6
Sigma). For a process with two specification limits (Upper
and Lower), this translates to slightly more than six process
standard

deviations

specification

limit

corresponds

to

between
such

that

equivalent

the

mean

the

total

of

six

and

each

defect

rate

process

standard

deviations.
Many processes are prone to being influenced by special
and/or

assignable

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causes

that

impact

the

overall

6 Sigma
performance of the process relative to the customer's
specification. That is, the overall performance of our
process as the customer views it might be 3.4 DPMO
(corresponding to Long Term performance of 4.5 Sigma).

However, our process could indeed be capable of producing

a near perfect output (Short Term capability also known as
process entitlement of 6 Sigma). The difference between
the "best" a process can be, measured by Short Term
process capability, and the customer's aggregate experience
(Long Term capability) is known as Shift depicted as Z shift or
shift. For a "typical" process, the value of shift is 1.5;
therefore, when one hears about "6 Sigma," inherent in that
statement is that the short term capability of the process is

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6, the long term capability is 4.5 (3.4 DPMO what the
customer sees) with an assumed shift of 1.5. Typically, when
reference is given using DPMO, it denotes the Long Term
capability

of

the

process,

which

is

the

customer's

experience. The role of the Six Sigma professional is to

quantify the process performance (Short Term and Long
Term capability) and based on the true process entitlement
and process shift; establish the right strategy to reach the
established performance objective
As the process sigma value increases from zero to six, the
variation of the process around the mean value decreases.
With a high enough value of process sigma, the process
approaches zero variation and is known as 'zero defects.'
Six Sigma at many organizations simply means a measure of
quality that strives for near perfection. Six Sigma is a
disciplined, data-driven approach and methodology for
eliminating defects (driving towards six standard deviations
between the mean and the nearest specification limit) in any
process -- from manufacturing to transactional and from
product to service.

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6 Sigma
The statistical

representation

of Six Sigma describes

quantitatively how a process is performing. To achieve Six

Sigma, a process must not produce more than 3.4 defects
per million opportunities. A Six Sigma defect is defined as

anything outside of customer specifications. A Six Sigma

opportunity is then the total quantity of chances for a
defect. Process sigma can easily be calculated using a Six
Sigma calculator.

Six Sigma according to GE:

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6 Sigma
A highly disciplined process that helps us focuses on
developing
services.

and

delivering

near-perfect

products

and

The word Six Sigma is a statistical term that

measures how far a given process deviates from perfection.

The central idea behind Six Sigma is that if you can
measure how many defects you have in a process, you can
systematically figure out how to eliminate them and get as
close to zero defects as possible. Six Sigma has changed
the DNA at GE it is the way we work in everything we do
and in every product we design.

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6 Sigma
Six Sigma Infrastructures:
A very powerful feature of Six Sigma is the creation of an
infrastructure to ensure that performance improvement
activities have the necessary resources. In this author's
opinion, failure to provide this infrastructure is the #1
reason why 80% of all TQM implementations failed in the
past. Six Sigma makes improvement and change the fulltime

job

of

small

but

critical

percentage

of

the

organization's personnel. These full time change agents are

the

catalyst

illustrates

that

the

institutionalizes

required

human

change.

resource

Figure

commitment

required by Six Sigma.

Leadership:
Six

Sigma

involves

changing

major

business value streams that cut across

organizational barriers. It is the means
by which the organization's strategic
goals are to be achieved. This effort
cannot be led by anyone other than the
CEO, who is responsible for the performance of the
organization as a whole. Six Sigma must be implemented
from the top-down.

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6 Sigma
Champions and Sponsors:
Six

Sigma

champions

are

high-level

individuals who understand Six Sigma and

are committed to its success. In larger
organizations Six Sigma will be led by a
full time, high level champion, such as an
Executive Vice-President. In all organizations, champions
also include informal leaders who use Six Sigma in their
day-to-day work and communicate the Six Sigma message at
every opportunity. Sponsors are owners of processes and
systems who help initiate and coordinate Six Sigma
improvement activities in their areas of responsibilities.

Green Belt:
Green Belts are Six Sigma project leaders capable of
forming and facilitating Six Sigma teams and managing Six
Sigma projects from concept to
completion.

Green Belt training

consists of five days of classroom

training

and

is

conducted

in

conjunction with Six Sigma projects.

Training

covers

project

management, quality management

tools, quality control tools, problem solving, and descriptive

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6 Sigma
data analysis.

Six Sigma champions should attend Green

Belt training. Usually, Six Sigma Black Belts help Green

Belts define their projects prior to the training, attend
training with their Green Belts, and assist them with their
projects after the training.

Black Belt:
Candidates for Black Belt status are technically oriented
individuals held in high regard by their peers. They should
be actively involved in the process of organizational change
and development. Candidates may come from a wide range
of disciplines and need not be formally trained statisticians
or engineers.

However, because they are expected to

master a wide variety of technical tools in a relatively short

period of time, Black Belt candidates will probably possess a
background including college-level mathematics and the
basic tool of quantitative analysis. Coursework in statistical
methods may be considered a strong plus or even a
prerequisite. As part of their training, Black Belts receive
160 hours of classroom instruction, plus one-on-one project
coaching from Master Black Belts or consultants.

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6 Sigma
Successful

candidates

will

comfortable with computers.

be
At a

minimum, they should understand one

or

more

spreadsheets,
presentation
processors.

operating

systems,

database

managers,

programs,

and

word

As part of their training

they will be required to become proficient in the use of one

or more advanced statistical analysis software packages. Six
Sigma Black Belts work to extract actionable knowledge
from an organization's information warehouse.

To ensure

access to the needed information, Six Sigma activities

should be closely integrated with the information systems
(IS) of the organization. Obviously, the skills and training of
Six Sigma Black Belts must be enabled by an investment in
software and hardware.

It makes no sense to hamstring

these experts by saving a few dollars on computers or

software.

Master Black Belt:

This is the highest level of technical and organizational
proficiency. Master Black Belts provide technical leadership
of the Six Sigma program.

Thus, they must know

everything the Black Belts know, as well as understand the

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6 Sigma
mathematical theory on which the statistical methods are
based.
Belts

Master Black Belts must be able to assist Black

in

applying

the

methods

correctly

in

unusual

situations. Whenever possible, statistical training should be

conducted only by Master Black Belts.

Otherwise the

familiar "propagation of error" phenomenon will occur, i.e.,

Black Belts pass on errors to green belts, who pass on
greater errors to team members. If it becomes necessary
for Black Belts and Green Belts to provide training, they
should do only so under the guidance of Master Black Belts.
For

example,

Black

Belts

may

be

asked

to

provide

assistance to the Master during class discussions and

exercises.

Because of the nature of the Master's duties,

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6 Sigma
communications and teaching skills are as important as
technical competence.

Staffing Levels and Expected Returns:

As stated earlier in this article, the number of full time
personnel devoted to Six Sigma is not large. Mature Six
Sigma programs, such as those of Motorola, General
Electric, Johnson & Johnson, AlliedSignal, and others
average about one-percent of their workforce as Black
Belts. There is usually about one Master Black Belts for
every ten Black Belts, or about 1 Master Black Belt per
1,000 employees. A Black Belt will typically complete 5 to 7
projects per year. Project teams are led by Green Belts,
who, unlike Black Belts and Master Black Belts, are not
employed full time in the Six Sigma program.
Black Belts are highly prized employees and are often
recruited for key management positions elsewhere in the
company. After Six Sigma has been in place for three or
more years, the number of former Black Belts tends to be
about the same as the number of active Black Belts.
Estimated savings per project varies from organization to
organization. Reported results average about US$150,000
to US$243,000. Note that these are not the huge mega-

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6 Sigma
projects pursued by Re-engineering. Yet, by completing 5 to
7 projects per year per Black Belt, the company will add in
excess of US$1 million per year per Black Belt to its bottom
line.

For a company with 1,000 employees the numbers would

look something
like this:

Master Black Belts: 1

Black Belts: 10
Projects: = 50 to 70 (5 to 7 per Black Belt)
Estimated

saving:

US$9

million

to

US$14.6

million

(US$14,580 per employee)

Because Six Sigma savings impact only non-value added
costs, they flow directly to your company's bottom line.

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6 Sigma

What is Six Sigma Certification?

Six Sigma certification is a confirmation of an individual's
capabilities with respect to specific competencies. Just like
any other quality certification, it does not indicate that an
individual is capable of unlimited process improvement, just
that s/he has completed the necessary requirements from
the company granting the certification

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6 Sigma
How does Six Sigma work?
Metrics lie at the heart of Six Sigma. The basic approach is
to measure performance on an existing process, compare it
with a statistically valid ideal and figure out how to
eliminate any variation. Project teams might speak in terms
of reducing cycle time, improving customer satisfaction,
cutting down on returns and improving the speed and
accuracy of order fulfillment. No project is considered
complete until the benefit has been shown and a team of
financial auditors signs off.

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6 Sigma
10 Things a Six Sigma Black Belt Should
Know
By:

Thomas Pyzdek
1.
In general, a Six Sigma Black Belt should be
quantitatively oriented.
2.
With minimal guidance, the Six Sigma Black Belt
should be able to
use data to convert broad generalizations into
actionable goals.
3.
The Six Sigma Black Belt should be able to make the
business case for
attempting to accomplish these goals.
4.
The Six Sigma Black Belt should be able to develop
detailed plans for
achieving these goals
5.
The Six Sigma Black Belt should be able to measure
progress towards
the goals in terms meaningful to customers and
leaders.
6.
The Six Sigma Black Belt should know how to establish
control systems
for maintaining the gains achieved through Six Sigma.
7.
The Six Sigma Black Belt should understand and be
able to
communicate the rationale for continuous
improvement, even
after initial goals have been accomplished.

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6 Sigma
8.
The Six Sigma Black Belt should be familiar with
research that quantifies
the benefits firms have obtained from Six Sigma.
9.
The Six Sigma Black Belt should know or be able to
find the PPM rates
associated with different sigma levels (e.g., Six Sigma
= 3.4 PPM)
10. The Six Sigma Black Belt should know the approximate
relative cost of
poor quality associated with various sigma levels (e.g.,
three sigma firms
report 25% COPQ).

How much percent of defect is

Acceptable?

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6 Sigma

Failure Rates in Various

Industries

Many large airports have 200 flights landing each day. A

one per cent error rate in landing means that every day two
planes will miss the runway. This is clearly unacceptable. If,
reluctantly, we accept that two misses in eight years is in
some way unavoidable then we are accepting an error rate
of 1 in 292,000 (3.4 errors per million). This is the six sigma
level.
With model-based development, a medium-sized model
could easily have around 292,000 objects. So we might
extrapolate

and

suggest

that

six

sigma

performance

demands that there be no more than one error in every

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6 Sigma
medium-sized project. As Motorola points out, a six sigma
program is a major step towards defect-free operation.

Six Sigma

Six sigma is based on statistical measures in which sigma is

one standard deviation about the mean. Six sigma as
defined by Motorola, however, is not a simple matter of
managing within plus or minus six standard deviations.
Taken literally, that level of control would allow for error
rates of only 0.002 per million. Instead, the six sigma
approach accepts that the mean is not fixed but can drift up
and down. It therefore allows a plus or minus 1.5 sigma
shift in the mean as the drift within its span of control.
Six Sigma is therefore concerned with managing both the
upper and lower limits of specification and the drift in the
mean.

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6 Sigma
The principle is illustrated in figure 2 where the normal distribution curve is shown
along with two others to indicate the point to which a 1.5 sigma shift in the mean
takes the curve.

Six Sigma Measures Reliability:

Six Sigma is a measure of the reliability or predictability
of a process. It is particularly appropriate when a process
is repeated millions of times within a manageable period.
Reliability can be roughly expressed as an absence of
failure.
We need to distinguish between the concepts of fault and
failure. A failure is an event where a system departs from
requirements or expectations (predictions). A fault is a
defect that may cause failures. The failure is therefore a
symptom that there is a fault somewhere. Note that the
fault may be in the software, in the operating instructions,
or somewhere else. Thus a design defect may be a fault.
Failures are not always noticed by the users, and not always
reported even when noticed. We therefore also need to
distinguish failures from reported failures.

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6 Sigma
The relationships between the three concepts are shown in
the following diagram.

Fault / Failure Relationships

A fault may exist for a long time without causing a reported

failure (either because the right combination of inputs never
occurs, or because nobody notices or cares). Another fault
may cause thousands of different failures, and it may take
some time for the software engineers to demonstrate that
all these failures are due to a single fault.
A failure may be detected by special monitoring software.
Some systems may be designed to be self-monitoring.
However, such automatic monitoring is only likely to pick up
certain classes of failure.
Sometimes it may take several faults acting together to
cause a failure. Performance failures may result from the
accumulation of many small faults.
To sum up: You can count either faults or failures, but dont
mix them up.

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6 Sigma
Failure metrics are preferred over fault metrics for one
simple reason: they tend to be much easier to relate to
customer satisfaction, whereas fault metrics tend to be
internal engineering-focused.

Pitfalls of Six Sigma:

Like any tool, Six Sigma can be used inappropriately. To the
man with a hammer, everything appears to be a nail.

Defining
metrics
from
producers
perspectiv

A common failing for engineers is to define

quality metrics that cannot be related to
customer satisfaction. This is particularly the
case with fault metrics.

e
The results of the inspection of a product (may

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6 Sigma
sometimes be expressed in six sigma terms.
This means that the inspectors are counting
Concentra

not failures (of the process) but faults (in the

ting on the product).

product,

Implicitly, of course, they may be counting

not the

failures in the production process. But this

process

approach may be of limited value in quality

improvement, because the process errors are
aggregated, and therefore difficult to trace.
There are two ways to get a good score on a six
sigma measurement of your manufacturing

Unreliable
testing
process

process.

One

is

to

have

an

excellent

manufacturing process. The other is to have an

inadequate testing process.
(ISO 9001 addresses this pitfall explicitly.
Clause 4.11 demands that test processes be
calibrated.)

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6 Sigma
If you only make a few hundred deliveries a
year,

it

will

take

thousands

of

years

to

demonstrate conformity to six sigma standards

Insufficien
t volumes
for
meaningfu
l statistics

(although it may take rather less time to

demonstrate
situations,

non-conformity).
six

sigma

measures

For
may

such
be

meaningless.
Note that a single software model, with half a
million objects and no known defects, is not
large enough to demonstrate six sigma quality.
You would need a series of such models before
you could claim six sigma quality.

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6 Sigma
One way of getting enough things for a
statistically significant sample is to decompose
the work into very small items.
Consider

an

organization

producing

documentation. They may produce dozens of

Measuring
unimporta
nt things

documents per year, containing thousands of

pages and millions of words. To get statistically
significant error rates, it may be necessary to
count the number of incorrect words.
The trouble with measuring quality at this
minute level of granularity is that they may
miss the wood for the trees. All the words may
be correct, but the document as a whole may
not be fit for purpose.

Implementation of Six Sigma:

After

over

two

decades

of

experience

with

quality

improvement, there is now a solid body of scientific

research

regarding

the

experience

of

thousands

of

companies implementing major programs such as Six

Sigma. Researchers have found that successful deployment
of Six Sigma involves focusing on a small number of highleverage items.

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6 Sigma
The steps required to successfully implement Six Sigma
are well-documented.
1.

Successful performance improvement must begin with

senior leadership. Start by providing senior leadership with

training in the principles and tools they need to prepare
their organization for success. Using their newly acquired
knowledge, senior leaders direct the development of a
management

infrastructure

Simultaneously,

steps

are

to

support

taken

to

Six

Sigma.

"soft-wire"

the

organization and to cultivate an environment for innovation

and

creativity.

This

involves

reducing

levels

of

organizational hierarchy, removing procedural barriers to

experimentation and change, and a variety of other changes
designed to make it easier to try new things without fear of
reprisal.
2.

Systems

are

developed

for

establishing

close

communication with customers, employees, and suppliers.

This includes developing rigorous methods of obtaining and
evaluating customer, employee and supplier input. Base line
studies are conducted to determine the starting point and to
identify

cultural,

policy,

and

procedural

obstacles

to

success.

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6 Sigma

3.

Training needs are rigorously assessed. Remedial skills

education is provided to assure that adequate levels of

literacy and numeracy are possessed by all employees. Topto-bottom training is conducted in systems improvement
tools, techniques, and philosophies.
4.

A framework for continuous process improvement is

developed, along with a system of indicators for monitoring

progress and success. Six Sigma metrics focus on the
organization's strategic goals, drivers, and key business
processes.
5.

Business processes to be improved are chosen by

management,

and

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people

with

intimate

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31

6 Sigma
knowledge at all levels of the organization. Six Sigma
projects are conducted to improve business performance
linked

to

measurable

financial

results.

This

requires

knowledge of the organization's constraints.

6.

Six

Sigma

projects

are

conducted

by

individual

employees and teams led by Green Belts and assisted by

Black Belts.
Although the approach is simple, it is by no means easy. But
the results justify the effort expended. Research has shown
that firms that successfully implement Six Sigma perform
better in virtually every business category, including return
on sales, return on investment, employment growth, and
share price increase.

MUMBAIS AMAZING DABBAWALLAS

A

Six

Sigma

means

the

accuracy rate is 99.999 per

cent, which otherwise means
that

for

an

office-goers

engaging a dabbawala for a

monthly

fee

of

something

between Rs 150 to Rs 300, the

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6 Sigma
chances of missing a day's home-made lunch is just one in
six thousand.
More than 175,000 or 200,000 lunches get moved every day
by an estimated 4,500 to 5,000 dabbawalas, all with an
extremely small nominal fee and with utmost punctuality.
According to a recent survey, there is only one mistake in
every

6,000,000

deliveries.

The

American

business

magazine Forbes gave a Six Sigma performance rating for

the precision of dabbawalas.
The BBC has produced a documentary on dabbawalas, and
Prince Charles, during his visit to India, visited them (he
had to fit in with their schedule, since their timing was too
precise to permit any flexibility). Owing to the tremendous
publicity, some of the dabbawalas were invited to give guest
lectures in top business schools of India, which is very
unusual. Most remarkably, the success of the dabbawala
trade has involved no modern high technology. The main
reason for their popularity could be the Indian people's
aversion to fast food outlets and their love of home-made
food.
Low-tech and lean
Although

the

service

remains essentially low-

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6 Sigma
tech, with the barefoot delivery boys as the prime movers,
the dabbawalas have started to embrace technology, and
now allow booking for delivery through SMS. A web site,
mydabbawala.com, has also been added to allow for on-line
booking, in order to keep up with the times. An on-line poll
on the web site ensures that customer feedback is given
pride of place. The success of the system depends on
teamwork and time management that would be the envy of
a modern manager. Such is the dedication and commitment
of the barely literate and barefoot delivery boys (there are
only a few delivery women) who form links in the extensive
delivery chain, that there is no system of documentation at
all.
A simple colour coding system doubles as an ID system for
the destination andrecipient. There are no elaborate layers
of management either just three

layers. Each dabbawala is also required to contribute a

minimum capital in kind, in the shape of two bicycles, a

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6 Sigma
wooden crate for the tiffins, white cotton kurta-pyjamas,
and the white trademark Gandhi topi (cap). The return on
capital is ensured by monthly division of the earnings of
each unit.

Six Sigma rating :

A few years ago, US business magazine Forbes gave
Mumbais dabbawallas a Six Sigma performance rating, or a
99.999999 percentage of correctness which means one
error in six million transactions.

BIBLIOGRAPHY
Books:
Management Book C. B. GUPTA
Marketing.Com Vijay Mukhi
E-Business Essentials- Matt Haig

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6 Sigma
Magazines:
Business Today March3, 2007 subscription

Articles:
Indian Express- October 3, 2006
Economic Times- December 15, 2006

Personnel:
Mr. Manzer Hussain, Director, Axis Computers (Project Guide)
Mr. Jeetu Chimnani, Chief Executive Officer, J-Info

Websites:
www.google.com
www.business.com
www.fabmart.com
www.j-info.com
www.marketingterms.com
www.internetworldstats.com

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